Antero Resources Analyst Slashes Rating On The E&P Firm, Citing 'Depressed' Investor Sentiment

Truist Securities analyst Bertrand Donnes downgraded Antero Resources Corp AR to Hold from Buy with a lowered price target of $28.00 from $37.00.  

The analyst expects investor sentiment to remain depressed over the next few months and projects reductions in Street estimates/price targets.

Although Donnes says AR has the depth and quality inventory to please large institutional investors in the coming years, he sees limited upside for the unhedged producer over winter without commodity recovery.

The analyst cites increased pressure on realizations in the near-term, with the company having translated incremental cost savings efficiencies into a higher maintenance production base.

The analyst lowered EBITDAX estimates to $1.227 billion (from $1.268 billion) vs. consensus of $1.173 billion for 2023 and $1.894 billion from $2.270 billion (vs. $1.895 billion street view) for 2024. 

Donnes has updated AR's estimates to reflect a reduced NGL/gas differential outlook. While he expects higher FCF Y/Y, the analyst projects near-term downward revisions from the Street and a lack of catalysts to provide little support amid the growing negative sentiment period in the gas E&P space.

Also Read: Natural Gas Prices To Rise Into Heating Season: Potential Rebound For Antero Resources In Q4

Price Action: AR shares are trading lower by 3.5% at $23.05 on the last check Monday.